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Author Question: Suppose the economy is operating below potential output. If policy makers try to avoid a budget ... (Read 28 times)

javeds

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on: Jun 30, 2018
Suppose the economy is operating below potential output. If policy makers try to avoid a budget deficit by raising taxes or reducing government spending, these actions would
 
  A) make a recession worse. B) increase inflation.
  C) negate the multiplier effect. D) help pull an economy out of a depression.

Question 2

The ________ determines the supply of money.
 
  A) Federal Reserve B) banking system C) President D) Congress
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
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TDubDCFL

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


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